Imugene Limited (ASX: IMU)

IMU is an Australian-based clinical-stage immuno-oncology company providing immunotherapies that activate cancer patients' immune systems to remove tumours. It was incorporated in 1986 with its base in Sydney, Australia.

Financial and Operational Update: On 14 December 2021, the company announced it had received a Notice of Allowance from the People's Republic of China Patent Office for Patent Application number 2016800291184, which protects its HER-Vaxx immunotherapy, currently in development for HER-2 positive gastric cancer.

On 13 December 2021, the company announced it had received US Food and Drug Administration (FDA) Investigational New Drug (IND) approval to initiate a new phase 2 clinical trial of its immunotherapy candidate, HER-Vaxx. This development allows Imugene to start patient recruitment and dose for the nextHERIZON study in HER2/neu overexpressing metastatic or advanced adenocarcinoma of the stomach or gastroesophageal junction known as Advanced Gastric Cancer (AGC). On the same date, the company announced it has received US Food and Drug Administration (FDA) Investigational New Drug (IND) approval to initiate a Phase I clinical trial of its oncolytic virotherapy candidate, VAXINIA (CF33-hNIS, HOV2).

On 3 December 2021, S&P Dow Jones Indices announced the changes in the S&P/ASX Indices, where IMU added the S&P/ASX 200 Index.

In the September 2021 quarter report, the company highlighted that during the period, it completed its $90 million Placement and oversubscribed $5 million Share Purchase Plan to fund its programs. Cash balance at the end of the period stood at $112.2 million. Quarterly research and development expenditure stood at $5.4 million.

Technical Analysis:

Daily Price Chart

Note: The purple color line in the chart depicts RSI (14-period). The sky-blue and green color lines represent 50-Period SMA and 21-Period SMA respectively.

On the daily chart, IMU stock price witnessed a breakout of the rising trendline support at AUD 0.434 level and sustaining above the breakout level. Moreover, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, indicating a negative momentum. However, the momentum oscillator RSI (14-period) is trading near an oversold zone at ~35.34 level. An important support level for the stock, is placed at AUD 0.38 while the key resistance level is placed at AUD 0.45.

Stock Recommendation

The company’s recent arrangement to fund its program, US FDA IND approval, and first patient dosed (post quarter-end) for Phase I clinical trial of oncolytic virotherapy candidate, CHECKvacc, is expected to help Imugene to boost its earnings. Moreover, IMU announced secondary endpoint progression-free survival (PFS) data for HER-Vaxx immunotherapy in HER-2 positive gastric cancer and is under the planning of three new HER-Vaxx Phase 2 studies.

Considering aforesaid facts, and current trading levels, we suggest a “Watch” recommendation on the stock at the closing market price of A$0.400 per share as of 31^st December 2021.

NOTE: Imugene Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any recommendation concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined:-

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.